• GBP/USD steadied around 1.3575 on Thursday as weaker dollar offset downbeat UK GDP data.
• The dollar weakened on Thursday amid rising expectations of Fed rate cuts and ongoing uncertainty surrounding global tariff disputes.
•Data showed that the British economy shrank more-than-expected, the biggest monthly drop since October 2023.
•Gross domestic output shrank by a larger-than-expected 0.3% in April from March - the biggest monthly drop since October 2023 and more than the 0.1% fall forecast in a Reuters poll, following 0.2% growth in March.
•Finance Minister Rachel Reeves called the figures disappointing, just a day after presenting a multi-year £2 trillion spending plan.
• At GMT 10:24, the pound was up 0.21% to 1.3575against the US dollar.
• Immediate resistance is located at 1.3605(23.6%fib), any close above will push the pair towards 1.3675(Higher BB)
• Strong support is seen at 1.3459(Jan 10th low) and break below could take the pair towards 1.3360(38.2%fib).
Recommendation: Buy near 1.3560, with stop loss at 1.3450 and target at 1.3750.
